big-bang changemaking: is there a "post-fundraising" world out there?

BIG-BANG CHANGEMAKING

IS THERE A “POST-FUNDRAISING” WORLD OUT THERE?

BIG-BANG CHANGEMAKING

IS THERE A “POST-FUNDRAISING” WORLD OUT THERE?

Steve Goldberg

Author, Billions of Drops in Millions of Buckets: Why Philanthropy Doesn’t Advance Social Progress

stevegoldb@gmail.comwww.billionsofdrops.com

Steve Goldberg

Author, Billions of Drops in Millions of Buckets: Why Philanthropy Doesn’t Advance Social Progress

stevegoldb@gmail.comwww.billionsofdrops.com

The Best & Worst of Nonprofit Times

$308 billion donated in 2008

Incredible social innovation

The Obama Administration understands social entrepreneurship & national service

The bad economy is killing nonprofits!

The very best social enterprises aren’t moving the needle of social change

Moving the Needle?FOCUSFOCUS SERVED SERVED

PER YEARPER YEAR

TOTAL TOTAL NEED NEED

(MILLIONS)(MILLIONS)

% OF NEED % OF NEED SERVEDSERVED

BELLBELLOut-of-School

Time 8,000 10,800,000 0.07%

COLLEGE COLLEGE SUMMITSUMMIT

College Access 1,300 200,000 0.65%

JUMPSTARTJUMPSTARTSchool

Readiness 13,000 3,300,000 0.39%

RAISING A RAISING A READERREADER

Infants to 5-year olds 200,000 10,100,000 1.98%

TEACH FOR TEACH FOR AMERICAAMERICA

“Educational Inequity” 425,000 13,000,000 3.30%

YEAR UPYEAR UP“Disconnected

Youth” 350 3,800,000 0.09%

Fundraising Recipe1. Build great relationships with lots

& lots of civic-minded people and/or a few really rich civic-minded people

2. Tell them really compelling stories about what you’re trying to do

3. Repeat over and over and over again forever ...

Limits of FundraisingIncredibly time-consuming (which often leads to burnout)

Often doesn’t raise enough money

Can be short-term with lots of strings attached

Great for funding innovative start-ups; not so great for advancing social progress

“American Dream Scorecard”

BETTERBETTER SAME OR SAME OR MIXEDMIXED WORSEWORSE

ECONOMIC ECONOMIC OPPORTUNITY OPPORTUNITY & SECURITY& SECURITY

1. FAMILY INCOME2. HOME

OWNERSHIP3. INCOME GAP BY

RACE

1. OVERALL POVERTY RATE2. CHILD POVERTY RATE3. DISTRIBUTION OF WEALTH4. AVE. OF NET ASSETS5. READINESS FOR RETIREMENT6. HOME OWNERSHIP7. ECONOMIC MOBILITY

EDUCATIONAL EDUCATIONAL OPPORTUNITY OPPORTUNITY

& & ACHIEVEMENTACHIEVEMENT

ACCESS TO COLLEGE

ACADEMIC SKILLS

1. GRADUATION RATES FROM PUBLIC SCHOOLS2. STANDARDIZED ACHIEVEMENT TEST SCORES3. MATH & SCIENCE SKILLS (COMPARED TO OTHER COUNTRIES)4. COLLEGE COMPLETION (BY INCOME LEVEL)5. COLLEGE MATRICULATION (COMPARED TO OTHER COUNTRIES)

PUBLIC PUBLIC HEALTH & HEALTH &

SAFETYSAFETY

1. INFANT MORTALITY

2. LIFE EXPECTANCY

3. SMOKING RATE

1. TEEN PARENTING RATES

2. ILLICIT DRUG USE

1. HEALTH INSURANCE2. CHILDREN LIVING WITH TWO PARENTS3. ASTHMA RATES4. OBESITY RATES5. POPULATION IN PRISON6. VIOLENT CRIME

Fragmentation HappensBusiness financing is performance-based, so strong companies raise more money than weak companies

Nonprofit fundraising isn’t; donors don’t know who can make best use of funding

So philanthropists reduce the risk of donating to weak nonprofits by giving small donations to more organizations

Result: money is spread too thin; relentless fundraising; reduced social impact

The Long Tail

Venture Funding

BUSINESSBUSINESS NONPROFITNONPROFIT

START-UPSTART-UP FRIENDS & FAMILIES; SEED

FRIENDS & FAMILIES; SEED

MID-LIFEMID-LIFE VENTURE CAPITAL

VENTURE PHILANTHROPY

LATE-STAGELATE-STAGE GROWTH CAPITAL

???

“Impact Index” (“IMPEX”)

VIRTUAL NONPROFIT STOCK MARKET

WHICH NONPROFITS ARE LIKELY TO HAVE THE MOST IMPACT?

Questions?

Thanks!